Change of scene

Italy’s biggest telco is looking to spin off its fixed-line network. This will shed light on the network’s cash-generating potential. Listing a minority stake further down the line could add value to TIM’s depressed shares and help the holding company lower its debt mountain.

Context News

Telecom Italia plans to transfer its fixed-line network assets into a separate company fully controlled by the group, Chief Executive Amos Genish said on Feb. 7.

The group, whose largest shareholder is French media conglomerate Vivendi, will discuss the idea at the next company board meeting, scheduled for March 6.

"We presented a hypothesis of legal separation of the network, with a dedicated company, and we expect to discuss it at the next board," Genish said after meeting the Italian government and the industry regulator.

Genish added that the company "at this stage" would be fully controlled by his company, and its governance would allow parity of access to sector operators.